stuart: my take today was all about george hw bush shaving his head in sympathy with that young man with leukemia. suzanne says that was lovely, stuart. thank you for reminding us what integrity and kindness looks like. says this is what we should cover more about our presidents. i love it. thank you very much, everyone, appreciate it. yours. dagen: thank you, stuart. connell: charges against five men accused in what is a worldwide hacking scheme talking about big money, 160 million credit card numbers, or mice. dagen: the government says this is the largest hacking and data breach scheme ever targeting major corporate networks and resulted in hundreds of millions of dollars in losses. members in new jersey are coming out and also charges against

five men for the international hacking and data breach. these and mastercard are two of the biggest names in the credit card business. connell: let's talk about it with brian finch. the thing here, we can start in the studio, they would be a number of companies they will talk about. they will save themselves they are in on this or was. is my credit card information safe? >> depends on what kind of data they have. there's a lot of headlines risk, a lot of data they have, if there is track one versus track to come it can become much more onerous. connell: quick explanation. >> basically your name and

credit card number. tough to replicate that. track two is they have your address and can do a lot of harm with that. connell: companies are doing a good job, okay or could they could do a lot more to combat this? >> they are doing a fairly good job overall. people are trying to hack these systems everyday. in the contest of the number of transactions done, it is really pretty manageable. connell: the question of where this is coming from, we know now from the indictment again, another example of this coming, it seems, from eastern europe. let me focus specifically on russia because everything that has been in the news i am curious, it is important to establish are the russians cooperative with us in our crackdown on cyber security? or is there a lot more that needs to be done there? >> and of the fbi and secret

service does a lot of outreach with the partners and in terms of investigations but you have to remember these are very difficult crimes to track. these crimes are so easy to conduct, you saw the indictment, 10, $15 for stolen credit card information. it costs $30 to test your malware. these are critically difficult crimes to track down much less detect. there will be an element, we're working with our partners but we hahave to be on the leading edg. today the criminals have every tool to be inventive. connell: when you say these crimes are easy with the carry out, difficult to uncover, how easy is it for somebody who wants to do the wrong thing in some foreign country to steal our information?

>> it is relatively easy. we have to be blunt about that. if you want a denial of service attacks, it works out to about $2 an hour. if you want to do a test to get your standard antivirus system it is about $30. if you want a zero day attack which is previously undiscovered exploit that is about $5000 up to about $250,000. connell: your view on that is what? we are defending ourselves? it is not like a one-sided game where nobody defends themselves. the companies do a number of industries. we talk about banking, credit cards, but it is still pretty scary. >> there is software to try to defend yourselves. look at global payment, the upgraded the software to try to combat it. it depends on what they do with the data.

connell: from a strictly business point of view, we will see more deals like we saw source fire and cisco and others. as a result of all of this. >> agreed. connell: thank you for coming in. a lot of money on the line, hundreds of millions of dollars more. dagen: ever signed up for one of those free trials and then get filled wit for it later? one in three has been hit with unwanted charges in the last year. for a total of $14.3 billion. over $200 per person. those who unknowingly become paid subscribers after signing up for free trials became half of the charges. according to a survey. it is not illegal, just unethical. connell: look at the video that has come in. over 100 injured, the train derailment.

the train coming at a high speed around the corner and then it just goes off the tracks. 200 passengers plus onboard, near the end of a six-hour trip from madrid. spanish authorities have opened up a formal investigation into the conductor's reports claiming it was traveling more than double what the speed limit would be for a train like that. dagen: that is incredible. natural gas no longer flowing from the burning golf. it has been put out. connell: back with us from the pits of the cme. what would you say? >> i would say right now the fire started wednesday night, they put it out tuesday. they did a really good job getting the fire out. a lot of the focus will be on that blowout preventer.

the government put a lot of time in the blowout preventer, which a lot of people blame for the deep water horizon situation. now the question is why did this blowout preventer not prevent the blowout, why did we have the gap? a lot of focus on what went wrong. there is a lot of talk in washington about how to deal with these new regulations on these so-called blowout preventers that are there to avoid what happened in this fire. that is going to be the focus of this investigation, what went wrong and that is what we will be talking about. in a lot of ways it is like after a plane crash.nt wrong, wt an error by the operator or computer problem. they will look into it right away. dagen: as always, good to see you, second day in a row.

connell: nicole petallides, what is happening? nicole: a market that is mixed. the nasdaq higher today. retail index to the upside. we are watching some of the names reporting earnings, the homebuilders getting hit hard for example. over the last 24 hours names like apple and facebook have been doing so well. we got the weekly jobless claims which were not such good news but at least in part because of the auto plant shut down. they often shut down to get ready for the next year. dagen: president obama turning his attention to the economy yesterday arguing the u.s. fought his way back from economic collapse five years ago. how do americans feel?

57% you not see signs the economy is turning the corner. joining us now, senior economist at wells fargo. you had to go back to november 2011, 68% felt that way. will this improve and does it cause economic malaise because people do not feel good about the economy? >> the line between recession and recovery is something you can't miss lot more attention to then people do. what public at large is expressing is in the pace of the economic recovery. they are right on the money. since recession ended, an average of 2.1%. prior to the last recession economy grew an average of 3.3%. things are not growing the way they are supposed to. dagen: will they start to do

that so? looking at the way the economy looks right now, business sectors are doing really well. technology, the railroad, when are people going to feel better and when is the economy going to grow at 3% plus? >> i don't know we're going to get back the days we saw prior to the recession. i don't think credit will ever get as easy as it did or anytime soon as easy as it was back in the last economic expansion. it has been that way the last couple of months. it is awfully frustrating we are four years into this and this is the recovery we have gotten so far. we also have a big drag from government right now. government spending has been

declining mainly the federal level now but also the local level and that is frustrating for a lot of people because you're wondering why do we have to make cuts in public education, we are still grappling with budget issues. dagen: back in the day this would have been an economy killer with 365 for the national average. how much of a drag is that? >> it is a bigger drag for some folks than others. it has not grown at all over the last four years. for households earning the median or less, gasoline prices are a much bigger deal to them, many of them have been cutting back on dining out, not buying clothes as often, not spending as much on their kids. that is another thing that feeds into the frustration were people say the economy is not getting better because it is not getting

better fast enough for them. dagen: it is great to see you. be well. connell: another big story, we have done it, federal prosecutors filing criminal charges against as a c capital. whicaccuse of allowing and encouraging insider trading. charlie gasparino has been ahead of the story at the beginning and charlie will join us for the very latest. dagen: making money with charles payne. he will tell you what he thinks about facebook. the stock higher today, mobile ad sales are up and then there is this. connell: how much do you trust congress? business leaders who depend on tax write offs are not willing to give them up with an overhaul of the tax system.

under the radar, lots of money on the line. stay tuned for that coming up a little later in the hour. down by $0.58. we will be right back. [ male announcer] surprise -- you're having triplets. [ babies crying ] surprise -- your house was built on an ancient burial ground. [ osts moaning ] surprise -- your car needs a new transmission. [ coyote howls ] how about no more surprises? now you can get all the online trading tools you need without any surprise fees. ♪

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dagen: a quarter past the hour, stocks now. crocs are taking a hit. nicole: everybody knows the shoes they make and they make flip-flops among other things. they came out with quarterly numbers in a complete disappointment. second-quarter earnings fell 43%. the stock down over 21%. both had weaker margins, facing overhead cost that increased, you also talk about the fact they had discounted models as well because of colder weather. let's take a look at a 10-year chart. my husband put these things on a 2005 and i said what are those

only to see the stock soar in 2007, 2008 and it has since pulled back. under pressure down 21%. back to you. connell: if you're going to pick a stock of the day, it has to be facebook. the earnings way past expectations, the stock way pa past. charles: ad revenue up, but the real key was mobile, the time people spend on the mobile devices is the mobile ad revenue, 41% of the total previous quarter, the bay? will be can they do it on a mobile platform. they have proven it. revenue per user of 25%, operating profits were up. if you have a dream quarter, this is obviously a dream quarter. there are some people who say listen, they made an extra 300 million you give the stock

$20 billion bump in market cap. charles: we are out now, in other words to protect the profits said i don't know where it goes in the upside, but take profits. i am happy about it. because we were in it. $300 million, dominic. dagen: still $5 below the stock price. connell: we were on air that day. charles: that was a terrible debacle. i really hope they teach business leaders about how badly they pulled that one off. connell: you have a big special at 8:00 tonight. charles: people say i love you

on tv, but i am not in the market. i say you are crazy. you are not in the market, you are in the market. wake up, america. every day we read stories of people not being prepared for retirement. when no social security may not be there, why not take control of yourself, be an owner of these companies. how often do somebody tell you by hot product they love? people do this all the time but don't think they should be the owner of the story. dagen: i have an ownership steak in the company. charles: the idea of being an owner and putting money to work for you because people are intimidated, afraid, we use the word. the federal reserve pumping money into things like that. a lot more to it.

connell: good luck with that, i'm sure it will be great. dagen: caroline kennedy will be the next ambassador. connell: and how much is being taken from the paycheck still to come. [ shapiro ] at legalzoom, you can take care of virtually

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>> 23 minutes past the hour. this is your fox news minute. first spanish police investigating the driver of the train derailment that caught fire in northwest spain now killing at least 80 people. a security camera caught the moment the train leaves the track crashing into a wall. spain transportation secretary confirming the train was traveling too fast. back at home caroline kennedy nominated to be the u.s. ambassador to japan. if confirmed, the daughter of president john f. kennedy would be the first woman named to the post in the third kennedy generation to serve as u.s. investor. former president george hw bush shaved his head to support the sick son of one of his secret service agents. he lost his hair as a result of treatment for leukemia.

may remember we lost a daughter to the disease when she was only four. although your latest headlines. back to you. dagen: makes you feel good, doesn't it? connell: yes, it does. legislation making it mandatory for private employees to enroll in the new retirement program. through to the details from los angeles. >> could you live on $14,000 per year? the average social security income, is planning why the state is now starting its own retirement plan forcing employees to start saving now. >> you need to look for the future, it is just too hard at this point to do it by yourself. >> bows can simply open the retirement account at the local

bank but many don't. >> there thinking about today. need my money to eat today, not to retire with. reporter: the california solution, for some players don't offer traditional retirement plans to withhold 3% of every worker's pay check. >> mentally it is a lot easier to put the money away before you can even spend it. >> the new pool of money would deliver a guaranteed rate of return. >> what is promised in the bill is not possible to deliver. if you could deliver guaranteed returns with less than 1% cost, no employer liability, no government liability, that is a fantasy. connell: feeling we can fix it by making it easier for people to spend less and save more. >> each owns their own account

and can opt out at any time but critics feel taxpayers ultimately will be on the hook if investments fail to perform. speak another opportunity for liability, another opportunity for lawsuit in yet another burden we are placing on the employer. speak on players will be fined if they don't participate. they fear eventually they will be required to match that employee contribution as many large companies do now. connell: do you trust congress? many say no, they don't, and they are up against a deadline coming our way tomorrow if they want to get their message across. dagen: will obamacare cost you more money? the majority of them say that is right. yeah we had

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connell: breaking news. these criminal charges filed against sac capital. dagen: charlie gasparino is all over this story. charlie: the investors that are still in there, they may be forced out. it would end today with this indictment. why are they doing it? pension funds probably have to pull their money out.

he is one of the holdouts. anthony will make his decision whether to stay in this fog today, if they remain open. he is asking his investors. it may not be his decision. what i understand is that they are telling investors to redeem shares. remember, there will be a press conference. around that time, we will hear from sac capital. this is what the investors are saying. the investors, the people that are still in the fund, whether

they will close down or not. they are forcing reductions. dagen: is there any way for it to perform? continue to deliver returns? >> what wall street firm will be with you? probably none. there is an issue whether that firm will be around. steve cohen is mike a brokerage firm. it is different. he does need wall street. remember, he does traits. no one will broker those traits. he cannot exist.

you have to cover this incrementally. fac is weighing whether to give back. the remaining outside money, they are debating what to do with it. they expect that they will be redeemed forcefully today. we will see later on. as they seek capital is done today. that is a huge story. connell: steve cohen is a big name. charlie: you are absolutely

right. we were the first to report that steve cohen was the ultimate target. he is yesterday's news. he is indicted. he said they are going after this guy. we reported it. steve cohen was not bad. dagen: i have had multiple -- charlie: and he was. there is a delusional aspect in

how he approached this. the daggers were pointing at them. connell: if the whole firm is out of business -- charlie: by the way, i do not think that they have given up on that. i have gotten this from top people. anthony, if he is thinking of pulling out -- you know. this is significant. dagen: terrific reporting. nicole petallides is watching shares of southwest.

nicole: down over 2.5%. southwest came out with quarterly profits. they were the only airline not to restructure or file for a bankruptcy of the major airlines. they did not restructure their cost advantages. they noted that government travel is off significantly. dagen: thank you. connell: business owners showing no trust for capitol hill. there is a big deadline coming up tomorrow. you have to get in and explained why you should be able to keep your tax deductions. dagen: more on those charges

against those five men for that worldwide hacking scheme. why you need to care. ♪ ♪ ♪ ♪ [ male announcer ] if y can't stand the heat, get off the test track. get the mercedes-benz you've been burning for at the summer event, going on now at your authorized mercedes-benz dealer. but hurry, offers end july 31st.

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connell: more breaking news. this is a plane at newark. it is on a taxiway. it is surrounded by fire and

police officials. it landed safely. there is smoke in the cockpit. apparently kept everything under control and everyone is fine. dagen: 40% of people say the new healthcare law will cost them money rather than save them. connell: monica crowley here to talk about it. >> i am surprised that the number is still relatively low. the number will only go in one direction. dagen: how much worse to you think that this gives?

october 1, those health changes have to start. >> some states say we are not setting this up at all. it is a total mess. this thing is so complex. you have democrats running as far away from this thing as possible. they all voted for it and now they are stuck with it. connell: you used the word incomprehensible. i think people have no idea how this affects them. the general person out there has

no clue. >> exactly. a 3000 page bill. >> there may be some relatively good things in there. rising premiums. you are already starting to see that. it is really going to be stuck to them. the fact that the irs, which we have all been covering, the fact that the irs will be the one in forcing this and as of january 1, you will have to prove to the irs that you have government approved health insurance. dagen: ultimately, it will come down to money. you already see people hours getting cut.

use these taxes. many of the taxes kicked in at the beginning of this year. >> it will hit people in the pocketbook first. higher taxes, higher premiums. then it will impact their health care. they will not be able to see their doctors in a timely fashion. doctors are fleeing medicine in droves. dagen: doctors, and a lot of them here in new york do not take insurance at all. >> this is just the beginning of the nightmare. they need to move fast in terms of the funding this whole thing.

the public is on their side. connell: monica is just getting warmed up. you can listen to her on the radio. dagen: thank you so much. >> always a pleasure. dagen: at length check on stocks >> this week it is all about earnings. not a lot of economic data on the calendar. there is a big load of data that we will see. kind of wishy-washy as far as earnings season goes. we are starting to see the forecast is not as quiet as what we saw before.

dagen: good to see you. thank you. connell: can washington asked in good faith to ask them to forgo their tax write off? the lobbyists know what is going on. we will explain the whole thing coming up. dagen: winners on the nasdaq for you. ♪

connell: this is big for people who own a business. that could be going away and going away soon. a case made for each probation. cases have to be made by tomorrow. here to make his case is the ceo of the dover group. i want to start with butch

because there is a personal story here. >> we have many different businesses and long island and new york. every year you have to change and replace and upgrade. if you take away their right off, how can we do that every year? connell: what is the dollar of fact on your business? >> it takes money away from the economy. we have to have the savings from

somewhere. connell: some people will try to make this argument. doug, you know about all of this stuff. i said in the introduction that you would maybe be willing to give this up. what about what butch was articulating air. >> we have an on competitive tax rate. it has to come down. you have to broaden the base. there may be some companies that

individually would pay more taxes, but they benefit enough offshore and onshore. you can't separate those issues. you should. the tax flow is much greater. that incentives are much more crucial. connell: that is a lot of money. >> it is. it is a lot of money. it adds up. we talk about this all the time. connell: at these types of things do not exist, what will congress do?

that is why they exist. >> tax reform is really hard. it turned 100 this year. harder than tax reform is keeping tax reform because of exactly that dynamic you described. one of the reasons it unwound is because they did not pay attention to the spending side. it makes dynamics very dangerous. >> , we trust them to make it simple? at least i know what i have now.

connell: we will see what happens tomorrow. butch, thanks a lot. very nice to meet you. thanks a lot. dagen: at the first comment from southwest airlines ceo. gerry kelly is coming up to talk about that incident. who will blink first? cbs could be going away if you have time warner. stay tuned. stay tuned. markets now continues. ♪ powerful screening tools, and guaranteed 1-second trades. and at the center of it all is a surprisingly low price -- just $7.95. in fact, fidelity gives you lower trade commissions than schwab, td ameritrade, and etrade. i'm monica santiago of fidelity investments, and low fees and commissions

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card numbers and coming anything you can do to protect yourself? cheryl: the first broadcast comments from southwest airlines chairman and ceo gary kelly about monday's crash landing of a boeing 737 at la guardia airport. the comments coming up in a moment on that in some. later this uprising admission about the future of consumer fees for baggage and other amenities. dennis: president obama said to deliver another speech about his economic agenda this afternoon. here is what is bugging me. is america the land of equal opportunity? cheryl: a top of the hour. uva of the opportunity to buy a few stocks. nicole petallides, so much to monitor. where do you begin? >> the look on the graphic, pretty good. the dow and the s&p to the downside, dow jones industrials down 1/2% protect the nasdaq one

of three indices squeezing out gains. and a lot of conditions on the move in the last 24 hours. and the have done particularly well. homebuilders on the other hand pulling back. and just a particular, a big lagger today. etna seems like chevron and verizon squeezing out a lot of things like home depot, microsoft and caterpillar also reporting and we may stop a winning streak. four straight weeks of gains. cheryl: we will see if these are defended. dennis: breaking news out of new jersey, federal prosecutors spoiling a massive credit card asking scheme, individuals after they breached networks of 17

retailers and payment processors of taking 1 sixty million credit card account and debit card -- >> those numbers were sold to individuals who use them to cause losses of $300 million. that is a conservative estimate of losses the amount we have been able to confirm so far and suffered by only three victim companies. the actual loss figure may be much higher. dennis: cybersecurity expert threat grid, thanks for being with us. this bust today, where does it bring in cyberhacking busts? is this an allied air or merely a tiny example of a common problem? >> this is one of the largest known in history today, actually an enormous globally organized

-- and specific impact. dennis: and only five guys on global schemes. >> it can replicate and leverage large numbers of computer systems with its few command prompt. dennis: stealing credit card data is one of the oldest hacks known to mankind. why are they doing a better job preventing this? >> doing the decent job helping, you have to understand the attack sector has grown in increased complexity. large enterprises, large organizations have complicated systems. there are a lot of points to find the pinpoint and spider from there. dennis: and the conservative estimate, they are hacking into

616 or something? >> this is all breaking news. they're not affected directly. and that will get real issue here in that sense. dennis: why aren't clients doing a better job stopping it or cybersecurity guys doing a job of stopping it? >> it is an evolving cat and mouse game. and because of the efforts were thwarting, the attempts of the actual attackers, security components in place are slowing down the attackers, the communications and working with law-enforcement and sharing information and training intelligence all those things

are helping to dissuade and contain some of these attacks but obviously they are not all being stopped. dennis: what is but missing piece to doing the better jobs stopping these kinds of attacks? it seems to me -- i live in new york and my credit card number gets used by somebody in some thought of when some algorithms sought someone ought to stop that. >> there are technologies and applications that do a number of sophisticated monitoring. all the credit card companies do that. these are all numbers. there's a lot of data extracted that does have value in the open market for nefarious reasons. dennis: when my credit card gets hacked, $50, and i am not liable for bogus charges. individual consumers were held liable would we do a better job of trying to help prevent these attacks? >> yes and no.

the size and extent and how this data was filled traded ffom the system there is nothing to do. once the main premise of an attack, you get access, maintain access, it is done in such volume consumers can't really combat that. dennis: thanks for being with us today. cheryl: federal investigators are still searching for the cause of monday's nose gear lending for southwest flight 345 new york at la guardia, the ntsb said in the front landing gear on the boeing 737 collapsed aboard into the body of the plane damaging the electronics. earlier i spoke with the germans ceo of southwest airlines, gary kelly about monday's incident. >> our first concern is for the safety of our customers, the safety of our crew. i am pleased and very thankful

there were no serious injuries and i thought our folks did a great job of safely evacuate in aircraft. count on two fingers held many times that has happened in the last 15 years. i was very pleased with that. the first responders in new york did a marvelous job as did all of our people that work for southwest la guardia airport. very gratified by that. obviously something we never want to have happen. any is too many. we are working closely with the ntsb. they are leading the investigation, interested to know what the cause was. at this point that is all i can say a. certainly i am very pleased we didn't have any serious injuries.

cheryl: southwest, you have been flying a the boeing aircraft since it started in 1971. the last few weeks have been a tough run for boeing. the c e of an airline that is of boeing customer do you have any thoughts about what is happening at boeing's? is this a problem for them? >> the boeing 737 is the great airplane, plenty of history, plenty of evidence to support that. at this point it is premature to point figures in any particular direction. boeing is a great company and we are very pleased to be flying airplanes. cheryl: southwest out with its quarterly earnings this morning, i go behind the numbers. will customers the project bags? you are going to want to hear his answer. dennis: what is bugging me is president obama's beach, spit in

my face and tell me it is rushing. >> not just morally wrong but bad economics. when will concentrate that the very top that can inflate unstable bubbles that thr the economy. when the rungs on the ladder of opportunity grow farther and farther apart it undermines the very essence of america. dennis: was partisan, put upon and purely political. i was hoping to the new attitude, a real embrace of business instead of bashing banks in demonizing wealth creation. instead president obama beam sony quality five times, more than he talks about growth. business needs and about government policy, and freedom to move capital. the president gives us uncertainty about obamacare, high taxes on bay, dividends, medical gear and restriction.

and overseas cash. most of all hope, capitalism is optimism. and as if that is what is holding us back, the first black president, range for five years, he is criticizing america for equal opportunity. what a bunch of bull, whiny, not hopeful. is president obama right? is america the land of in equal opportunity? your turned away in. cheryl: there you go. under our on fire after earnings this morning, charles payne says be where it, why you not buying it? still makes money by buying that stock coming the next. dennis: the battle of the network titans, cbs versus time warner cable. which dog will blink first? cheryl: as we go to break let's take a look at the energy market.

as you can see oil in the 105 range down 4 sense. [ indistinct shouting ] ♪ [ indistinct shouting ] [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistinct shouting, bell dinging ] ...you'll bust your brain box. ♪ all onhinkorswim from td ameritrade. ♪ from td ameritrade. trust your instincts to make the call.

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gerri: the dow down 62 points i want to point out, at the top of the hour and analysts coming up, basically likes 3m. we will talk about that and home depot and comments coming out of the gil morgan ceo, interest rates go up for mortgages and people don't buy homes, shocking. anyway, there are people for you down 216, 7809. i was mentioning her name, nicole petallides on the floor of the stock exchange. would be looking at? nicole: let's look at qualcomm with the mobile resolution. i don't think there is another semiconductor company, at the homan revolution in smart phones and the like, a lot of concern about going solar and some of

that to asia. they catch him out with revenue, earnings that matched expectations that continue to talk about growth in the smart phone market and you're seeing stock reacting nicely, up 3% because of the quarterly numbers. in the meantime a couple games, cream capital and piper jaffray changed, that is worth knowing as well. cheryl: we will see you at the bottom of the hour. dennis: making money with charles dean. under of armor hitting a new high after the second quarter expectations. charles: i did this in july, wanted to update it because of that. i want to talk about why you pick certain stocks and think they will do well. first of all the numbers were phenomenal. gross margins increased 40.3% to 44.9%. when i see margin expansion

facts go up. taking market share, taking market share in football and baseball and building momentum and footwear. and the second half will be strong and debuting a new product, a new speaker. you saw it getting hammered, fox has not changed since they started out. check finish under armor. i have a beef -- charles: they haven't necessarily change to. this speed farm they call it themselves, a revolutionary running shoe built in the factory that features a seamless steel cut that will redefine how your running shoes fit. it will redefine the category, that is what they're saying. this company has been able to do that. cheryl: a shoe made a number of factory. charles: the bottom line is, this is the most important

thing, this is a company that has continuously evolve. is not a one trick pony. 6 shutout with the shirt, continues to evolve and that is why the stock is continuously of performance, they can charge more money and expand margins and stock is a runaway grand slam. the other thing i want to talk about, i am doing it special, trying to get people to invest. nicole was talking about qualcomm. i can understand the. average person has to understand this technology. if you want f 5 networks i can understand it. under armor, athletic wear, look at this stuff. this is stuff i talk about a lot on this network. we understand that. lumber liquidators, we understand hardwood floors, we understand our heads and the need medicine. jacoby mexican grill, we understand mexican food, trip advisers, we understand taking the trip and looking for a few reviews on line. this is not rocket science. all those companies all started in the last 20 years or more

recently so these are relatively brand-new homegrown american companies you could have been part owner of. cheryl: the golden analyst cut down their price target cut in the ring, susan channel checks right now. i dare the goldman analyst to see what is happening. i think they are wrong. i look now all. the peter lynch theory. go out, see what is happening, consumer trends. charles: i haven't seen any new products. cheryl: they are right now. charles: i see numerous new products. we will see what happens after the close. they do a lot of other things. i have been in their retail stores, they're doing a good job with respect to the vaulting but here is the thing. you can be an owner of these companies, you can be an owner. stop being afraid. dennis: you can buy what you

know. i like that message a lot. charles payne. cheryl: 8:00 p.m. eastern. dennis: demystify the stock market and help you shared your fears and prepare for a more prosperous future. don't miss this, make your market with a fantastic charles payne. cheryl: i like the title, but one. getting a lot of bonds, investors are moving to cash, not stocks. that is absolutely the wrong move. dennis: and the horrific for increase since the last night, 78 people killed. what went wrong? coming up in your fox news minute. read a look at the world currencies and how they fare against the u.s. dollar. we will be right back. i want to make things more secure.

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>> 23 minutes past the hour your fox news minute. spanish before the opening a formal investigation into the driver of the train that derailed and caught fire in northwest spain killing at least the people, injuring 140. seen's transportation secretary confirming the train was speeding. fat home the center for disease control saying people in seven states are suffering from a stomach bug, a parasite found in

contaminated food or even drinking water sickening at least 275 people, 175 of those cases are in iowa. the department of health investigating fresh vegetables as a possible cause. former president george h. w. bush shave his head to support the sixth run of one of his secret service agents identified as patrick, lost his hair as a result of his leukemia treatment. you may remember george and barbara bosh -- george and barbara bush lost a daughter to that disease when she was only 4. now back to cheryl. that is some support. cheryl: can't get enough of that picture. thank you so much. investors withdrawing $43 billion in the past month from bond mutual funds, the largest monthly outflow we have seen ever. concerns over everything from the fed to the economy, even china has investors flocking to

catch with the bond profits. jason fried of investments is here and has $22 billion under management. what do you say to clients and investors? they are already on the side lines. are they knew to the sideline? why are they making these movies and not taking advantage of the equity market? >> you have to look at this reaction to the fed's announcement and what is going on in the market's near-term/long-term framework, a near-term basis feels like the action, they may be right, equity markets run a good degree, fed's signaling rising rates, everyone is concerned about every possible risky assets out there at least from the margin, having a little bit of cash might be helpful but from a long-term perspective is hard to get to liking cash. from a long-term perspective earnings 0 for you. when inflation is running 2% you are basically losing purchase power everyday use it their

overtime. cheryl: the money market, seems a little ludicrous to me and also 1 billion of those out lows are coming from taxable bonds. they are paying taxes to get out of bonds and going to cash. doesn't make much sense. >> we are an advocate of a balanced approach. you don't react and go running in to catch every time you get scared, take the lumps if they come around. what you do is a counterbalance, you can position a portfolio with a nice mixture of bonds and stocks, typically the latest in line and not be in the great example but generally 1 offsets the other and you get a counterbalancing action in the portfolio. you can do that with other mixes in the portfolio. if you structure the portfolio right you can weather the storms and position yourself for long-term returns that come to a good steady -- cheryl: you like emerging-market

bonds. you are saying -- the market stock-indexes have been down. you like the bonds. you say don't count out emerging-market, but middle class that is building around the world. >> from a long-term perspective we have been advocates of the emerging market consumer, the rise of that consumer, how much they're willing to spend as they grow their incomes which they have been doing. we have been favorable to the sovereigns who are running with that balances that developed markets don't see right now. 20% to 30% or 40% debt to gdp. of the u.s. got there we would be happy. of europe got there we would be happy. you see it in emerging markets and hurting yourself yields between 5% to 8% and deal with currency fluctuations which fluctuate with commodities and the fact that these economies are marginal producers of almost everything and they got -- the 5% is a nice compensation for that.

cheryl: i want to get to something i promised our viewers, 3 m came out with their earnings and there are issues, one of the stocks of the doubt that is down. the scotch tape and post-it notes, seriously, earnings per share coming up higher 2.6% but electronic energy business, was weaker but you are recommending this. you are recommending it now after what you saw this morning? >> we are. we are trying to invest the equity portion of the portfolio in a stable quality oriented manner. you have disappointments here and there. one earnings report does not drive the decision dramatically. this is a company trading 17 times earnings earning greater than 2% yield and growing over time and delivering earnings growth in a consistent manner. the worst environment, the earnings slipped less than 10% in extreme moves. this is -- the idea here is you

get your income from equity position in if you go for the stable equities. make sure you don't pay for those equities and get a better income stream and rising income stream compared to fixed-income. cheryl: a dividend 31% on the yearly charge talking about the company. thank you so much. interesting take. dennis: csn time warner extended negotiation deadlines and coming up a look at who made link first. cheryl: part ii of my interview with southwest ceo kelly whose surprise answer about the future of consumer fees for baggage and other amenities and take a look at the winners and losers around the s&p and earnings season in full force this week. we will be right back.

nicole: nicole petallides live on the stock exchange, back and forth action on wall street for four weeks of gains but this one not looking great. and you can see the stock is down dramatically with many other home builders. 32 home builders came out with quarterly reports and disappointment, the are organ says third quarter earnings, eighty-one% so that is not good news live ultimately there have been a lot of concerns rising mortgage rates actually got some news, the chief financial officer and chief executive officer with some headlines they have made including higher rates which cause increased cancellations and volume slowed

according to the ceo so they certainly think it is just a blip and the ceo says he is disappointed that the rates did rise quickly and the market had a, quote, ridiculous reaction to the ben bernanke speech. he is reacting obviously. we see the markets with ben bernanke alluding to the fact the fed may influence their bond buying. cheryl: we are getting breaking news, the wall street journal is reporting the faa has issued a directive, not a recommendation but a directive to anyone that operates a boeing 787 in this country to remove or inspect those emergency locator beacons. this is what happened with regard to the ethiopian airlines jet, it was the beacon, the emergency began where the fire began at the faa telling u.s. operators united continental, remove that emergency locator beacon and inspect it at the

same time. dennis: let's talk about the battle of the network titans, cbs versus time warner cable, who will blink first? cbs was supposed to go dark this morning in its food fight with time warner cable but the deadline has been pushed to 5:00 p.m. monday. let's handicap this with a multimedia analyst at s&p capital, first of all, makes a bold prediction. which side will blink first? >> ordinarily you would think cbs being vice rated network would have the advantage and time warner cable you expect to blink and this has been the case in battles like this but they are rewriting the rules of engagement at this point. the programming cbs provides the online video platform, you see streaming providers like waiting in the wings, time warner cable

is pitching its subscribers to defect. dennis: time warner cable pulling out two big guns. a first was cbs of you want to go dark we will tell people in new york to start subscribing to this which basically steals the broadcast signal out of the air and sells it to sell phone users without giving networks their cut but this other threat, time warner cable saying you want to go dark, maybe we will give that coveted channel 2 slot to somebody else. that is a really big threat, isn't it? >> absolutely. never heard this position used in that way as a potential threat and i don't think cbs will allow that to get into a new contract that will change their channel position but keep in mind the other factor working in time warner cable's favor is this is no football season to worry about so everything put together this is primarily a battle of two giants. tiie warner cable subscribers

could be exposed to the disruption which is fairly significant but not overwhelming. dennis: which side do you think is more right? one one end time warner cable says cvs -- cbs is asking for a station for prices that are 600% of prices we pay other cbs stations but cbs argues you are paying us less than $1 month, our audience is levi times as large as espn and you pay espn $5 a month per household. which side is right? >> there's always a truth somewhere in between. there is a fair argument that espn is gaining significant premium over broadcast network like cbs but it is comparing apples to oranges. i would argue you are going to see a fairly significant increase over what time warner cable s currently paying and this whole issue goes to the crux of the reach transmission

consent issue which bears the bill in washington languishing for 18 months. regulators are really taking knows but it all comes down to the way the business has shifted and read transmission being a major, major driver of revenue poised to wrap up. dennis: what is the chance this spreads to other cbs station groups, spreads to showtime and twelve million time warner homes which cbs owns? >> there is a real chance that could happen but i would handicap it. you have two companies that are very astute in issues like this. error is some agreement reached over the weekend, that is my hope. dennis: this is great stuff. i would lose the botox but it was entirely perfect, thanks for being with us today. dennis: no one should ever where a boat tie, ever. cheryl: is a fox business

summertime showdown. we started with eight stock pickers and we are down to seven as we reveal the results of their month-long stock plays. we will say goodbye to another consistent, rob morgan or jim fresh when and they have more than their reputation on the line. >> this is rob morgan, chief investment strategist for fulcrums securities in philly. i'd get a philly cheese steak my stock picks beat yours. i am so confident that if you win i will buy you two. >> this is jim freshen looking for the summertime showdown, i accept his challenge and i will matches the litchis stake with new york's best pizza. cheryl: we have cheese steaks versus new york beat the. loser pays, you got to watch the show down at noon eastern to see who stays and who goes. dennis: you have never had a philly cheese steak. you haven't lived. cheryl: everyone tells me they are good. dennis: some of us -- all right.

dow jones reporting the gas rig fire has been extinguished. otherwise known as put out. phil flynn has the fallout from the cme. cheryl: part ii of my interview with jerry kelly. his answer about the future of consumer fees for baggage. and other amenities. with the spark miles card from capital one,

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>> the business brief, criminal charges are filed against one of the biggest hedge fund names, stephen coin. what effect does that have on the industry? charlie gasparino was on "varney and company" this morning and here is what they both said. stuart: huge black eye for the entire hedge fund industry. what if they can't cheat any more? >> no one is cheating it. cheryl: mortgage rates easing for the second straight week. and the average rate of a 3-year loan is 4.31%. and they start to rise as the federal reserve indicated it might slow its bond purchases later this year and that is the latest from the fox business network giving you the power to prosper.

cheryl: breaking news out of miami coming from the affiliate's wsb and. possible hazmat situation according to many dead fire, they responded to a hazmat situation, possibly evolve depleted uranium. live pictures cominn in, workers are saying and operational manager may have opened a drone filled with hazardous material, they evacuated 150 feet around that area. a contractor is telling officials it is the treated uranium. this airport, they dismantle airplanes and hence the concern about this particular drum of materials. we will keep you posted but those are live pictures out of florida. in the southwest, 60% from this time last year the stock is up but it is down.

competitors like dell the performing a lot better. shares are up 118% year over year. i asked gary kelly, the chairman and ceo about second quarter results. if he would consider getting into the baggage the market place. here is his response. >> it is a record first half performance of from every measure it is really solid. our evaluation is superior to any airline in the business. at least in the major categories. cheryl: all the other airlines are doing it like customers are getting used to it and it is

driving profits for delta and united. is it something you would consider? >> right now i feel very strongly that we have ample evidence to support no bad fees and no change these in particular. i think we are winning more customers by that approach. will that be the case years from now? i don't know. we will need to be open-minded to make sure we serve our customers and our shareholders equally well and we are again having a record year so far and i feel very good about all those good things hours southwest of the doing to serve our customers. cheryl: i want to ask about american based in dallas, your home town and the u.s. airways merger pushing towards completion although the stars have lined up for them. what does that mean for

southwest? >> the industry is obviously volatile over its history and all the legacy airlines have fix themselves through bankruptcy. all the old airlines are gone because they are either out of business or have emerged as a new airline through the miracle of bankruptcy. we will be very well prepared for more vigorous competition in that sense if the merger goes through. i think we will have opportunities at southwest. we are still a low-cost leader among the major carriers and substantial cost advantage and need to work hard to maintain that. we are very interested in more access to the slot controlled airports so i am hopeful we will

get a chance at some of the slots particularly at washington national airport. cheryl: a big market for southwest. thanks to jerry kelly, chairman and ceo of southwest airlines. dennis: natural gas no longer receiving that will that caught fire in the gulf of mexico two days ago. dow jones reported the fire has been put out and phil flynn joins us from the kids of those cme where a philip gasoline or gas station can affect oil prices. >> it can. when supplies get tight that can happen and it can happen with natural gas. we first reported this blowout happened in places that eased after that but it is still going to be a major issue on the lines of people in the industry as well as politicians. a lot of people are already asking questions, why that blowout preventer failed. the u.s. government after the deepwater horizon made a lot of adjustments and it is supposed

to be fixed. the blowout that happened was not supposed to happen. sounds like everybody on the hercules rig did everything right. the blowout preventers did not work and a lot of people are asking why. the fear for the marketplace is new regulation. is the government going to come down hard, put off new regulations? that is the biggest concern. dennis: thanks very much. cheryl: time for stocks on the floor of the stock exchange and teddy wise birds -- wiseburg, made money on mobile advertising. >> how lucky can you get? cheryl: you like facebook? >> it is a stock we own and i recommend. on fox i was asked what my stock for the year would be december of 2012 and i picked facebook. we own it that and we own it for

our clients. up is always better than down. it is interesting company, we bought it because we thought was interesting. church isn't over until the singing stops so we have a long way to go but so far so good. cheryl: you have a bunch -- how much more upside do you think it has got? >> i don't know. we are buy and hold investors, we own stocks for a long time. we bought it because we think the stock has the potential to do a lot better. i would say we are somewhere in the first or second inning, a long way to go. cheryl: thanks, katiteddy. dennis: this will scare tech and media titans, some sized drive, you plug it into a slot on the back of your hdtv and plays web

and video on your big screen. netflix, google's youtube, anything. $35 trinket, done by rival devices costing $500, microsoft x box, sony's playstation, all wrote -- also friends comcast and time warner by going over the top and threatens comcast again and viacom and 20 first century fox, our parents. for google, it is a some size trojan horse. when google bought youtube it was an outlet for amateur home videos but a senior executive told me the real agenda sunday was internet tv. we can do it far cheaper he says. that day is approaching more rapidly if it succeeds. you can get it in stores at best buys and by the end of the month. our producer got one and i am ordering one today. is president obama right? is america the land of equal

opportunity? that is bugging me and we want to hear from you. tweet as your answers. ♪ ♪ ♪ ♪ [ male announcer ] if you can't stand the heat, get off the test tra. get the mercedes-benz you've been burning for at the summer event, going on now at your authorized mercedes-benz deal.

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cheryl: dennis kneale is getting a ton of responses underwood is bugging me today. dennis: we asked to weigh in. is president obama right? is america the land of inequal opportunity, i am fed up with his failure to take responsibility and lead, he is divisive and harvard jones says go, dennis, another speech about nothing blaming the other guy for problems in washington. nothing new. gerri: there's more on twitter. dennis: don't miss it. cheryl: we are moments away from the u.s. attorney's news

conference, looking at a live picture, that is not the u.s. attorney but getting things ready to go. criminal charges filed against hedge fund sac capital. we will bring you this news conference, more on this fascinating story. dennis: will investors stick by steve cohen. the fed's won't charged him with criminal charges. jack marino is next with exclusive detail. friday night, buddy.

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dennis: the storage brimming wall street. live pictures from the u.s. attorney's office as we await a news conference on the indictment of sac capitol and what it alleges was systemic insider-trading within the firm. >> the 41-page indictment includes port charges of securities fraud and one charge of wire fraud. the u.s. attorney's office is looking to force sac to forfeit the illegal profits. no one knows the story like our

very own charlie gasparino who will join us with reaction and why this could cost sac billions good afternoon, everybody. welcome to a new our of markets now. i'm lori rothman. adam: and i'm adam shapiro. what did you come up on the markets. nicole petallides is on the floor of the new york stock exchange. a good day for facebook. >> reporter: this certainly is. the start of the we are seeing. turning into green across the board. all three averages do have green arrows. the dow is now up by six points. had been down earlier. so you see here that we are gaining across the board. you mentioned facebook. that certainly is a name that has garnered plenty of attention. yesterday after the closing bell when they came out with quarterly they talked about ad revenue obviously on the rise. the stock hitting a 52 week high. of 27%. the ipo w